Best Indian Mutual Funds to invest in 2025: Large-Cap, Flexi-Cap, Multi-Asset & SIP Funds

If you’re an NRI looking to grow your wealth, investing in mutual funds in India is one of the smartest moves you can make this year. In this blog, we will let you know the best mutual funds to invest in. The Indian economy is on a strong growth path, and mutual funds offer an effective way to tap into this opportunity. Before we go into details, let’s brush up our basics.

What Are Mutual Funds?

If you’re new to investing, mutual funds are a great starting point. A mutual fund pools money from many investors and uses it to invest in a diversified range of assets, like stocks, bonds, or other securities. It’s like a team effort – many people investing together to access a wide range of assets while reducing individual risk. Here, instead of picking individual stocks or bonds, you get a professionally managed portfolio that’s designed to match your investment goals. There are different types of mutual funds, and each one has its own unique benefits.

Types of Mutual Funds

• Equity Funds – These funds invest mainly in stocks. They offer higher growth potential, but they come with a bit more risk. If you’re looking for long-term growth, this might be a good choice.
• Debt Funds – These funds invest in bonds and fixed-income securities. They tend to offer stable returns with lower risk, making them a good option for conservative investors.
• Hybrid & Multi-Asset Funds – These funds mix stocks, bonds, and other assets, offering a balance of growth and stability.
• Sectoral & Thematic Funds – These focus on specific industries, like technology or healthcare, and can offer higher returns, but they come with more risk.
• SIP (Systematic Investment Plan) – This is a method of investing where you invest small, fixed amounts at regular intervals. It’s an easy and disciplined way to start investing, especially if you’re new to it.

Why should NRIs invest in Indian Mutual Funds in 2025?

India’s financial markets are showing great potential for growth, and mutual funds offer an easy and effective way to take advantage of it.  Here’s why you should consider mutual funds:

• High growth potential: India’s economy is expected to grow at a solid 6.3% to 6.8% in 2025, thanks to factors like rural recovery and easing inflation. In fact, it’s one of the fastest-growing economies right now, with strong corporate earnings and a stable policy environment driving this growth. So, if you’re looking for a growth opportunity, India’s got a lot going for it!
• Diversified investment options: One of the biggest advantages of mutual funds is diversification. Instead of putting all your money into one or two stocks, mutual funds spread your investments across different sectors. This helps reduce risk while still giving you the potential to earn. It’s a smart way to invest without putting all your eggs in one basket.
• Regulations for better transparency: The Securities and Exchange Board of India (SEBI) has made sure that mutual funds are more transparent and safer than ever. With stricter guidelines in place, it’s easier for investors to choose the right funds based on clearer information. This means less guesswork and more confidence in where you’re putting your money.
• Easy to invest: For NRIs, investing in mutual funds is super easy. You can use your NRE or NRO accounts to start investing, and there’s no need to worry about picking individual stocks or managing a complex portfolio. It’s a straightforward, hassle-free way to get involved in India’s growing market.
• India’s global appeal: India’s appeal as an investment destination is stronger than ever. The rupee is stable, investor-friendly policies are in place, and the stock market is booming. With more global investors turning to India, NRIs stand to benefit from a growing economy and increased interest in Indian assets. And with the RBI supporting economic growth through its monetary policy, it’s a great time to invest.
• Booming stock market: Although markets like the NIFTY 50 and Sensex have faced some ups and downs recently, they’re still strong indicators of India’s market potential. As of February 2025, the NIFTY 50 is still off its all-time high, which could present a great opportunity for long-term investors to get in at a good price.
• Favorable interest rates: The Reserve Bank of India has recently lowered interest rates to give the economy a little boost. Lower rates can make stocks more appealing, since it could lead to stronger corporate earnings. That’s good news for anyone looking to invest in India’s equity markets.

Mutual funds offer a way for NRIs to invest in India’s growing economy without the need to manage individual stocks or worry about market swings. Whether you’re looking for steady returns or higher growth potential, there are always some mutual funds to invest in that fit your needs. 

So why wait? 

Consider starting your investment journey today and take advantage of the opportunities India has to offer in 2025.

We’ve handpicked some of the best-performing mutual funds across categories like Large-Cap, Flexi-Cap, Multi-Asset, and SIPs, tailored to help NRIs maximize their returns in 2025. Let’s explore the top choices.

Also read: Direct vs Regular Mutual Funds: Which is Best for NRIs/OCIs?

1.Large-cap mutual funds

What are large-cap mutual funds?

Definition

Large-cap funds allocate at least 80% of their portfolio to India’s top 100 companies by market capitalization. These companies are well-established, financially strong, and have a long history of delivering stable and consistent returns.

Who should invest in Large-Cap Funds?

Large-cap funds are perfect for NRIs looking for stability and consistent growth. If you prefer a safer bet in a somewhat unpredictable global economy, large-cap funds could be the right choice. Here’s why:

• Lower risk in uncertain times – Large-cap stocks tend to hold up well during market fluctuations and economic slowdowns. If you’re someone who wants to avoid excessive risk, large-cap funds provide that cushion.
• Steady returns – Blue-chip companies (the big, well-established names) have a solid track record of delivering consistent performance, even when the market is volatile.
• Boosted by institutional investment – Both foreign and domestic institutional investors are heavily investing in large-cap stocks. This added liquidity and confidence can drive further growth, making them a safer option for long-term investors.

Top large-cap funds for NRIs

These large-cap funds offer a balanced mix of stability and long-term growth, making them an ideal choice for NRIs looking for reliable wealth creation in 2025.

2.Flexi-cap & multi-cap mutual funds

What are flexi-cap & multi-cap mutual funds?

Definition

Both Flexi-Cap and Multi-Cap funds invest across market capitalizations—large-cap, mid-cap, and small-cap stocks—but with key differences:

• Flexi-Cap Funds – Fund managers have the freedom to shift investments between large, mid, and small-cap stocks based on market conditions.
• Multi-Cap Funds – These funds must allocate at least 25% each to large, mid, and small-cap stocks, ensuring a balanced diversification across company sizes.

Who should invest in Flexi-Cap & Multi-Cap Funds?

If you’re an NRI looking to take advantage of India’s booming economy and looking for flexibility in your investments, flexi-cap and multi-cap funds could be the best fit for you. Here’s why:

• Riding India’s growth wave – Mid and small-cap stocks are expected to deliver strong performance in 2025. If you want to tap into that higher growth potential, these funds offer an opportunity to capture those gains.
• Flexibility in changing market conditions – Fund managers have the flexibility to adjust their allocations between large, mid, and small-cap stocks depending on the market’s movements. This flexibility helps optimize your returns based on current trends.
• Ideal for long-term growth – Historically, these funds have outperformed pure large-cap funds in terms of compounded annual growth rate (CAGR). So, if you’re looking for wealth creation over the long haul, these funds offer the potential to deliver higher returns.

Top flexi-cap & multi-cap funds for NRIs in 2025

With high flexibility and broad market exposure, these funds provide NRIs with a strategic mix of growth and risk management, making them a strong contender for 2025 investments.

Multi-asset mutual funds

What are multi-asset mutual funds?

Definition

Multi-asset funds invest in a diversified mix of asset classes such as equities, debt, gold, and other alternatives. This balanced approach helps reduce overall risk and volatility, making them a safer option for investors.

Who should invest in Multi-Asset funds?

Multi-asset funds are perfect for NRIs looking for a balanced approach to investing—where stability meets growth. These funds are ideal for those who want to protect their investments while still earning steady returns. Here’s why they’re a great choice for 2025:

• Hedge against volatility – With the uncertainty surrounding global markets, multi-asset funds provide a safer, diversified approach. These funds can help minimize risk, especially in unpredictable times.
• Stability from Debt & Gold – The inclusion of debt and gold helps stabilize returns during market downturns. So, if you’re looking for a mix of safety and growth, this option could be ideal.
• Great for conservative investors – If you’re an NRI who wants steady growth without excessive risk, multi-asset funds offer a well-rounded solution with lower volatility.

Top Multi-Asset Funds for NRIs in 2025

With a balanced mix of equity, debt, and gold, multi-asset funds are ideal for NRIs looking for consistent returns without high risk, making them a solid investment choice for 2025.

Systematic Investment Plan (SIP)

What is a Systematic Investment Plan (SIP)?

Definition

SIP (Systematic Investment Plan) is a disciplined investment method where investors invest a fixed amount in mutual funds at regular intervals (monthly or quarterly). This approach helps build wealth gradually, without worrying about market timing.

Who should invest in SIPs?

If you’re looking to invest without the stress of timing the market, SIPs (Systematic Investment Plans) are a smart and disciplined way to go. Here’s why SIP is the best strategy for NRIs in 2025:

• Best way to enter at High Valuations – Investing a lump sum when markets are high can be risky. SIP allows you to spread your investments over time, reducing the impact of market volatility and helping you enter the market at different price points.
• Rupee cost averaging – When the markets dip, SIP buys more units at lower prices, which lowers the average cost per unit over time. This strategy helps you make the most of market corrections and leads to better returns in the long term.
• Hassle-free, Disciplined investing – SIPs automate the investment process, ensuring that your wealth is building consistently, month after month. You don’t have to worry about the short-term ups and downs of the market—it’s a straightforward, disciplined approach to growing your wealth.

Best SIP mutual funds for NRIs in 2025

With steady investments and lower risk, SIP remains one of the most effective ways for NRIs to invest in India’s growing markets in 2025.

Which fund should you choose?

We understand that every investor has different financial goals and risk appetites. That’s why we’ve identified the best mutual funds based on your investment strategy:

• For stability & low risk → Large-Cap Funds
  If you prefer steady growth with lower volatility, large-cap funds invest in top companies with a proven track record of stability.
• For flexibility & higher growth → Flexi-Cap & Multi-Cap Funds
  Ideal for those looking to maximize returns, these funds dynamically allocate investments across market caps, taking advantage of growth opportunities.
• For diversified risk & steady returns → Multi-Asset Funds
  A great choice for balanced investing, these funds spread investments across equities, debt, and gold, ensuring lower risk and stable returns.
• For disciplined & long-term wealth creation → SIP Investments
  Perfect for those who want a hassle-free, systematic approach to investing while benefiting from rupee cost averaging.

Why should you start investing in India in 2025?

The Indian market is full of opportunities, making it a smart time for NRIs to invest. Here’s why:

• India’s economy is booming – One of the fastest-growing economies, attracting strong global investments.
• Strong corporate earnings & GDP growth – Businesses are expanding, and markets are responding positively.
• Favorable NRI investment policies – A stable rupee and NRI-friendly regulations make India an attractive investment destination.

Invest in mutual funds in India through SBNRI

SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.

NRIs can now download the SBNRI App and choose to invest in different NRI mutual fund schemes in India with ease. You can also get detailed investment advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.

What are SBNRI charges for investing in Mutual Funds?

SBNRI is a completely free platform built for NRIs/OCIs. There are no hidden fees or annual maintenance charges. SBNRI earns from its business partners and does not charge any fee for NRIs/OCIs to use its platform for investing in regular mutual funds.

Get Started Today!
Now is the best time to build long-term wealth in India. Choose the best mutual funds to invest in and start your NRI investment journey today!